Jurnal Ilmiah Al-Syir'ah
Vol 17, No 2 (2019)

THE INFLATION AND POVERTY IN INDONESIA: CONSEQUENCE OF USURY?

Azwar Iskandar (The Research Center and Community Service (P3M), Sekolah Tinggi Ilmu Islam dan Bahasa Arab (STIBA) Makassar)
Bayu Taufiq Possumah (Postgraduate School, Tazkia University Colllege of Islamic Economic)
Khaerul Aqbar (The Research Center and Community Service (P3M), Sekolah Tinggi Ilmu Islam dan Bahasa Arab (STIBA) Makassar)



Article Info

Publish Date
18 Dec 2019

Abstract

This research was conducted to analyze the influence and correlation of interest rates as one form of the implementation of usury practices on inflation and poverty in Indonesia. This study uses secondary data from the publication of the Central Statistics Agency (BPS) and Bank Indonesia for the period 2005-2018. This study uses Simple Linear Regression Analysis Techniques and Pearson Correlation Techniques. The results showed that interest rates as one form of the implementation of usury practices had an effect and had a positive and significant correlation to inflation in Indonesia. The practice of ribawi actually will bring a negative impact on the economy of the people in Indonesia in the form of an increase in the level of inflation in society. Measures of monetary policy intervention in maintaining price stability and inflation in society have not shown a positive impact. Also, the results of the study showed that interest rate policy also had a positive influence and correlation on the increase in the poverty depth index. That is, when interest rates are set to rise, the poverty depth index in the community also tends to go up or get worse. The findings of this study reinforce the legitimacy of the word of Allah Subhanahu Wa Ta'ala in the Qur'an and the Hadith related to the prohibition of usury practices that can lead to injustice, wrongdoing, and economic destruction of the people.

Copyrights © 2019






Journal Info

Abbrev

JIS

Publisher

Subject

Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice

Description

Jurnal Ilmiah Al-Syir'ah, with registered number ISSN 1693-4202 (Print), ISSN 2528-0368 (Online) is a peer-reviewed journal published twice a year in June and December by Faculty of Sharia, State Islamic Institute of Religious Affairs (IAIN) Manado. Jurnal Ilmiah Al-Syir'ah is a Communication Media ...